PROJECT REPORT

On
Bank of Baroda

Submitted By
Wayne Castelino
(Roll No: 02)
S.Y.J.C

Holy Family Junior College

 BANKING STRUCTURE IN INDIA
Scheduled banks in India
(A) Scheduled commercial banks

Public sector banks Private sector banks Foreign banks in Regional rural bank
India

(28) (27) (29) (102)

Nationalized bank Old private banks
Other public sector New private banks
bank (IDBI)
SBI and its associates

(B)Scheduled co-operative banks

Scheduled urban co-operative banks (55) Scheduled state co-operative banks (31)

Here we more concerned about public sector banks and competition among them. Today, there
are 28 public sector banks in the banking sector: 19 old private sector banks and 8 new private
sector banks.

These new banks have brought in state-of-the-art technology and aggressively marketed their
products.

The Public sector banks are facing a stiff competition from the new private sector banks.

Introduction

Bank Profile
Bank of Baroda is the third largest bank in India, after the State Bank of India and
the Punjab National Bank and ahead of ICICI Bank. BoB has total assets in excess

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of Rs. 2.27 lakh crores, or Rs. 2,274 billion, a network of over 3,000 branches and
offices, and about 1,100 ATMs. IT plans to open 400 new branches in the coming
year. It offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, credit
cards and asset management. Its total business was Rs. 4,402 billion as of 30 June
2010.

As of August 2010, the bank has 78 branches abroad and by the end of FY11 this
number should climb to 90. In 2010, BOB opened a branch in Auckland, New
Zealand, and its tenth branch in the United Kingdom. The bank also plans to open
five branches in Africa. Besides branches, BoB plans to open three outlets in the
Persian Gulf region that will consist of ATMs with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July
1908 in theprincely state of Baroda, in Gujarat. The bank, along with 13 other
major commercial banks of India, was nationalised on 19 July 1969, by
the government of India.

Mission

to be a top ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence.

OBJECTIVES OF CENTRAL BANK OF INDIA

 To help ensure the monetary stability of the country-

 To assist in regulating the financial system of the country,

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  To formulate, implement and monitor the monetary policy. - To maintain the liquidity in
the country-

 To ensure adequate flow of credits. - Prescribes parameters for banking in the country.

 Maintain public confidence in the system- To manage the foreign exchange

 Management Act. - To facilitate external trade.

 Issue and exchange currency-

 Maintain supply of currency.

 Own and operate the depository and exchange for government bonds. –

 Banker to the government

METHODOLOGY
Data Collection Techniques:
This project consists of two parts. The first part is a study of the banking industry, Central Bank
of India using secondary data sources.This secondary information has been sourced from the
internet and from business related magazines and news papers. The second part of the study has
been done using an exploratory research process and a structured questionnaire was developed
for this purpose. For the collection of primary data

This was the only method used. The reason I used this method is because a need was felt for the
free influx of information about the products. Also this method allowed the use of skills gained
in class.

Presentation of Data

Services offered by Bank of Baroda

The bank has divided its operations in 6 distinct business lines-

1. Corporate Financial Services

2. Personal Financial Services
3. Business Services
4. Treasury
5. International Operations

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 6. Rural Banking

SWOT Analysis of Bank of Baroda:

Strength

 Bank of Baroda has the largest network of overseas branches among all
Indian banks
 Its greatest strength is the confidence of stake holder on bank

Weakness:
 Bank of Baroda lack technologically as compared to another bank
 There has been some problem in relation to staffing

Opportunity:
 Bank of Baroda started a new pilot project of MOBILE ATM in Lucknow and
Pune for the first time in India
 The bank plan to further increase their international presence by adding
more branches

Threats:
 Entry of foreign bank in Indian market is threat to almost all Indian bank
 Staff problem : lack of staff is threat to the bank in the near future

Market Segmentation of Bank of Baroda

The Bank of Baroda has segmented its market both geographically and
demographically and behavioral segmentation can also be witnessed when we have
a closer look at its market. The main segmentation is based on the income level
and the class of people. Corporate clients and the people relating to high class of
the society are the customers of Bank of Baroda

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Customer are segmented on the following criterion

 Occupation-Different products for different occupational segment

identified

 Income - Minimum balance serves as a income segment barrier

 Geography -Concentrated on Tier 1 & Tier 2 Cities trying to extend reach

 Age-Different products like student account

Positioning Strategy
It is the fourth largest bank in India and consists of 2.5 crore customers. Bank’s
latest marketing initiatives are aimed at positioning it as a financial service provider
with “value proposition” and “market driven” being the keywords. The bank has
rolled out branches far and wide across the country to distribute an impressive
assortment of financial products to its heterogeneous customer base.

Targeting strategy
 Corporate banking market: this market targets the industries & fulfills
their financial needs.
 Capital market: this segment is targeted on the long term needs of the
individual as well as of industries.
 Retail banking market : this segment is for retail investors & provide them
short term financial credit for their personal, house hold needs

Marketing Strategy of Bank of Baroda

Marketing Strategy of Bank of Baroda analyzed on the basis of the following

points:
I) Recent Marketing Initiatives

1) Communication Campaigns: ‘Shukriya Sau Salon Kaa’ and ‘Baroda Next’

2) Use of Sybase 365 Marketing Information System

3) Launch of Baroda Swarojgar Vikas Sansthan

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4) ‘Next Gen’ Branch opened in Ahmedabad

5) 50 city sales offices opened

II) Expansion

Bank of Baroda has established its operations in Maldives, Sri Lanka, Singapore,
UAE, Yemen, Russia, Kenya, China, Malaysia, Thailand and many other countries
around the globe. Rapid integration of business with the technologies through core
banking solutions, I-banking, and host of other facilities has established Bank of
Baroda as the

Foremost PSU bank in the country.

III) Publicity

To build its brand equity, the bank has organized hosts of seminars nationally and
internationally latest being Basel II. Bank has actively managed its public relations
through media.

IV) Customer Focus

The bank has built its brand around superior customer services and international
focus which are also the point of differentiation of the bank from other PSU banks.

7 P’s of Marketing

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1) Products and Services: Bank of Baroda provides various banking products and
services to its customers. They are as follows:

 Retail Banking
 Rural/Agri Banking
 Wholesale Banking
 SME Banking
 Wealth Management
 Demat

2) Price:

The pricing policy of a bank is considered important for raising the number of
customers’ vis-à-vis the accretion of deposits. Also the quality of service provided
has direct relationship with the fees charged. Thus while deciding the price mix
customer services rank the top position. The banking organizations are required to
frame two- fold strategies. First, the strategy is concerned with interest and fee
charged and the second strategy is related to the interest paid. Since both the
strategies throw a vice- versa impact, it is important that banks attempt to
establish a correlation between two. It is essential that both the buyers as well as
the sellers have feeling of winning.

3) Place:

The Bank of Baroda has good location across the country. Bank of Baroda has an
extensive network of 3082 branches spanning the length and breadth of the country.
There is a branch in the vicinity of everyone in need of a banking solution.

With a customer centric approach of being operational 24 hours a day, across 25

countries, the bank branches

Bank of Baroda has always taken good location for its branches. For Example: In
Mumbai, there is a place with the name of Andheri (E), where it has branches at
very convenient places for customers. The branches and ATMs are nearby Andheri
Railway Station, Chakala , Saki Naka, etc. So the bank considers various good
elements while selecting a place for banking transactions.

4) Promotion:

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Promotion is nothing but making the customer more and more aware of the
services and benefits provided by the bank. Bank of Baroda uses a lot of new
technology to communicate to their customers. Promotion through

 Public Relations:
 Television:
 Newspapers and Magazines:

5) People:

Bank of Baroda has always had an immense faith in the infinite potential of its
people. This has been historically demonstrated in its recruitment practices,
developmental initiatives, placement processes and promotion policies. Strategic HR
interventions like, according cross border and cross cultural work exposure to its
managers, hiring diverse functional specialists to support line functionaries and
complementing the technical competencies of its people by imparting conceptual,
managerial and leadership skills, gave the Bank competitive advantage.

6) Process:

Process is made easier. There are different counters for different products like
loans, deposits, cards etc. the customer can easily go to the counter he want and
perform the transaction. Process at ATM is also customer friendly with less
complexity.

7) Physical Evidence:

Physical evidence is the overall layout of the place i.e. how the entire bank has
been designed. Physical evidence refers to all those factors that help make the
process much easier and smoother. It is very necessary that the place be designed
in such a manner so as to ensure maximum convenience to the customer and cause
no confusion to him. Mostly nationalized banks fails to provide maximum
convenience to customers when compared to private banks.

Bank of Baroda competitors

Competitors from Public sector Bank

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  State Bank of India
 Punjab National Bank

 IDBI Bank

Competitors from Private sector Bank

 ICICI Bank
 HDFC Bank

 Axis Bank

Competitors from Foreign Bank

 Standard Chartered Bank

 ABN-AMRO Bank

 HSBC

Monitoring of results:

Bank of Baroda has developed manifold in short period of time through facilities and
services provided to its customer. The Bank has an excellent growth rate. In last
couple of years the bank has opened many branches and ATM centers. The bank
offers customer oriented products and various facilities which attract more and
more customer which resulted in its growth.

Current Articles

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MUMBAI: As Bank of Baroda (BoB) starts aligning the businesses of erstwhile Dena
Bank and Vijaya Bank with itself following the merger, it is also looking to instil a
new work culture and make its management more accessible to employees.

Two senior employees from erstwhile Dena Bank and Vijaya Bank said on condition
of anonymity that the BoB management has assured them that they will not be
discriminated against by existing employees. One of them said employees were
happy to see BoB managing director and chief executive P.S. Jayakumar personally
interacting with them at head offices and branches.

“This is very different from how we have worked, where access to our chiefs was
not very easy. For instance, Jayakumar came on a sudden visit to the Dena Bank
head office in Bandra Kurla Complex (BKC) quite late in the evening and spoke to
employees," the person cited above said.

This person said the merged entity is drawing up a branch rationalization plan. “At
places in Andheri (Mumbai), where all three banks have branches in close
proximity, it is being discussed that only one will be retained and it will be moved to
the branch premises with the best facilities," he said.

As part of the alignment, BoB had sent out notices to employees at administrative
offices of these two banks that their working hours will change from 10am-5pm to
9am-4pm from 1 May, 2019. “Presently, working hours of administrative offices of
Bank of Baroda are 9am to 4pm while that of erstwhile Vijaya Bank and erstwhile
Dena Bank are 10am to 5pm. Consequent to amalgamation, it is imperative to
bring uniformity in working hours of administrative offices across the bank to
ensure smooth integration of the amalgamated entity," the notice had said.

According to the second person cited above, employees of these two banks were
given the option to either opt for a voluntary retirement (VRS) and retire on 31
March, 2019 or join the merged bank. He said that around 260 employees from
Dena Bank chose to retire instead of joining BoB. It could not be immediately
ascertained as to how many employees from Vijaya Bank used this option. “These
employees who opted for VRS are mostly people who had less than five years to
retirement," he said.

A BoB spokesperson said that in its efforts to comfort the employees of erstwhile
Vijaya Bank and erstwhile Dena Bank, the bank management has constantly been
in touch with employees of the amalgamated bank through various methods.

These, the spokesperson said, include letters, town hall meetings at various cities
addressing their queries, and uploading frequently asked questions (FAQs) on all

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the banks’ websites and intranet. “A centralized dedicated employees’ query
redressal system has been put in place for replying to queries of employees, in
addition to other measures," the spokesperson added.

In April 2017, State Bank of India (SBI) merged five of its subsidiaries—State Bank
of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of
Travancore (SBT), State Bank of Hyderabad (SBH) and State Bank of Patiala (SBP)
—and Bharatiya Mahila Bank (BMB) with itself. This process, which made SBI one of
the world’s top 50 large banks in terms of assets, saw 4,000 employees from SBI
and the associate banks opting for voluntary retirement.
Meanwhile, PTI reported last month that BoB will undertake an evaluation of its
board and has invited bids from consulting firms by early May.

CONCLUSION

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Indian banking sector has a long journey of growth, lead to rapid expansion of
banks branches all over India. Deposit mobilization and priority sector lending in
highly protected environment with extremely regulated framework. Banking sector
reforms introduced in 1991 had created a favorable impact on performance,
productivity, profitability and efficiency of Indian public sector banks and this
continues to the second era of e- banking period. The Narsimham Committee report
gave a new dimension to Indian Banking sector. As an effect of liberalization,
privatization and globalization policy there has not only been rapid expansion in the
number of banking institutions in the country but the banking horizon of the
country has also change significantly. In the view of the fact that the public sector
banks that have been operating in an extremely protected economic environment
and it has also given time to meet the prudential and capital adequacy norms as
well as norms to manage NPA. Hence now the banks works on the concept of
universal banking and service oriented. The whole process of reforms has
intensified competition leading to overall improvement of public sector banks. The
profitability is an important aspect of performance appraisal, which indicate the
ability to perform various tasks in the most effective way. The overall profitability of
public sector banks had been significantly differed during the study period.
Productivity was also another parameter in this study. Among the nationalized
banks, Oriental Bank of Commerce and corporation Bank had very sound position in
terms of productivity during the study period. Among the associates State Bank of
India – State

Bank of Hyderabad was very much productive than their counter parts but State
Bank of Saurashtra stands at the least position. Thus the public sector banks are
not as profitable as other sectors are, It means that efficiency and profitability are
interrelated. Public sector banks require Substantial capital to support growth.
Public sector banks have already sacrificed a lot of their profits for achievement of
social objectives. Due to cut throat competition and technology, the public sector
banks must concentrate to improve productivity and profitability which is essential
to survive in a globalised economy. All these require inner strength and control over
costs, new techniques of managing various branches , motivating people, proper
consideration for innovation, better system and procedures, fixing adequate and
reasonable norms and creation of team spirit in bank management will help the
public sector banks to perform well in forthcoming years. PSBs dominate the
banking sector in India and will continue to be dominant in the foreseeable future.

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Bibliography

https://.livemint.com
https://wikipedia.org

https://.investopedia.com
http://Scribd.com

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